The latest M&A deals in wealth management.

SMP Group of Companies, a global professional and financial services group based in the Isle of Man, said that it is buying Jersey-based Helm Trust Company, a trust and corporate services provider.

The transaction is subject to regulatory approval, and specific financial terms of the transaction were not disclosed yesterday. 

“When we announced our management buyout, we spoke of quickly building momentum in the growth of the group. This deal represents the first step in delivering on that promise. It is an excellent fit for several reasons; Jersey is a key strategic jurisdiction in which we intend to invest heavily. Helm has developed strong networks in overseas markets we currently have limited access to, and it has very similar cultural and infrastructure expectations to the rest of our business,” David Hudson, Group CEO of SMP Group, said. 

The deal has been undertaken with the support of Palatine Private Equity, the UK mid-market private equity house that guided SMP through its management buyout earlier this year, with additional debt funding from Apera Asset Management, the statement added.

SMP Group has 200 staff. Besides its Isle of Man location, its staff work in Jersey, Malta, Hong Kong, the Bahamas, the Cayman Islands, and Switzerland.

Meanwhile, Helm Trust Company, which has been delivering trust and company administration services for more than 25 years, is regulated by the Jersey Financial Services Commission.

There have been a number of merger and acquisition (and later rebranding) deals affecting the world’s trusts sector. A number of banks, such as Investec, ABN AMRO and Barclays have spun off trusts and associated businesses. ZEDRA bought the Barclays UK trusts business and completed that deal in April 2016. In December 2017 investor services firm SGG Group bought Jersey-based First Names Group from AnaCap Financial Services, the private equity organisation. Among other deals, in 2014, Butterfield Group, part of Bermuda-based Butterfield, completed its acquisition of Guernsey-based Legis Group, taking on its trusts and corporate services business.

Salamanca, the UK-based Investec Trust Group; ABN AMRO sold its trusts business a decade ago to Equity Trust. Rival Netherlands-based ING spun off its trusts business in 2007. In the Channel Islands, deals have included investment by Close Brothers Private Equity in Jersey Trust Company and Kleinwort Benson’s acquisition of Close Brothers Offshore Group. In 2011, TMF and Equity Trust merged. Australia and New Zealand Banking Group has completed the sale of its ANZ Trustees business to Equity Trustees. US-based private equity house Corsair Capital bought a majority stake in ZEDRA Group.